Abstract: Britain was one of the earliest industrialized and urbanized nations in the world. In the urban and rural development process since the Industrial Revolution, small towns in Britain have always played an extremely important role, and the population size is relatively high. Looking back on the development and planning of small towns in Britain, they have undertaken multiple functions such as population evacuation, post-war reconstruction, inner city regeneration, and city-region functional nodes at different stages. Until now, although the development of small towns still faces many challenges, as the buffer zones between urban and rural areas, also as the live museums of historical heritage and local culture, they still have significant position that cannot be ignored. Being aware of this, in the reform of the spatial planning system in 2004 and 2011, including housing, public affairs and facilities planning and other authority was delegated to local governments, which includes small towns. For the first time communities can prepare neighborhood plans with real legal weight and can grant planning permission. But at the same time, aware of the precious resources and vulnerabilities of small towns, the planning of small towns in Britain is extremely cautious. It is a moderate development and transformation under the premise of protecting historical and cultural characteristics, and it is based on the foundation of extensive local public participation. Small towns' planning in China should learn from the experience in Britain.